According to the UK government, £174,500,790 was provide for Reproductive and Child Health Programme Phase II with a start date of 15 December 2006.
Then, according to an India government site, a cash inventive system was set up:
Monetary Benefits (Compensation) after adopting permanent method of sterilization (w.e.f. 1 Nov 07): -
NSV operated beneficiary gets Rs. 1100/- as a cash incentive.
Female belonging to SC/ST/BPL category gets Rs. 600/- after abdominal/laparoscopic tubectomy.
Female belonging to above poverty line category gets Rs. 250/- cash after tubectomy by ant method.
While promoters/motivators (i.e. ANM/MPW/AWW/Gramsevak etc) gets Rs. 200/- & Rs. 150/- as a cash incentive upon promoting a client for vasectomy & tubectomy respectively.
So the program itself doesn't directly force people to be sterilized, but it pays private parties to "motivate" the people to be sterilized.
For example, according to U.S.-U.K. Foreign Aid Tied to India’s Forced Sterilization Campaign:
According to papers filed in the Supreme Court of India last month, the 53 women of low caste were recruited by government “motivators” who took them to a government middle school in Bihar this January. Anay Jumar Chowdhary, a government doctor, performed sterilizing procedures on the women, who were laid out on school desks and anaesthetized by untrained staff. He worked at night by the light of a flashlight and a single generator light bulb.
“I tell you they treat them not as human beings, but as cattle or goats. They just cut and take out veins. They were bleeding profusely. It is butchery,” said Devika Biswas, a health-rights activist in Bihar with the Human Rights Law Network, who filed the petition in court along with videotaped evidence of the camp and affidavits from the women’s families.
“All of them are forced,” Biswas told the Register. “Generally, the people in the village are very simple. They are very poor. Some of them married at the age of 12 or 13. They do not know what it means. They are told it will be good for them. They are not told it will make them permanently unable to bear children. No risks are explained to them.”
Devika Biswas v. Union of India & Ors.[WP (C) 95/2012], Hon’ble Supreme Court of India adds:
A fact-finding in Rajasthan’s Bundi district found that 42% of the women were not counseled about the permanency of the operation
The Petition also brings to light the instances of illegal sterilisation in Orissa where 6% of the physically disabled and 8% of the mentally challenged women were forcefully sterilised.
A 16 September 2016 decision by the Supreme Court of India states:
unrealistic targets have been set for sterilization procedures with the result that
non-consensual and forced sterilizations are taking place
Additionally, articles like The uterus snatchers of Andhra explain how women were tricked into having their uteruses removed.